The Trump administration agreed on Sept. 18 to drop an appeal that tried to block federal funding for the massive Gateway Tunnel and other infrastructure projects in the region. The decision comes weeks after the federal government asked a federal court to overturn a lower decision that found the funding freeze flagrantly violated law.
The U.S. 2nd Circuit Court of Appeals said that New York, New Jersey and the federal government agreed to dismiss the appeal. The court’s order did not explain how the parties reached an agreement.
On Aug. 28, the Trump administration told a federal judge that it was appealing a court order that forbade it from freezing funding for the $16 billion project to build two rail tunnels under the Hudson River.
The notice of appeal, filed in the 2nd U.S. Circuit Court of Appeals, challenges a June ruling by U.S. District Judge Jeannette A. Vargas that found that the Federal Transit Administration violated federal law when it stopped reimbursement payments to the Gateway Development Corporation last year.
The Trump administration first froze funding for Gateway in September 2025. The administration has opposed the project to keep funds from supporting what i...